Hospitality Operations Management

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1 CORK INSTITUTE OF TECHNOLOGY INSTITIÚID TEICNEOLAÍOCHTA CHORCAÍ Semester 1 Examinations 2009/2010 Module Title: Hospitality Operations Management Module Code: HOSP 7027 School: Humanities Programme Title: Bachelor of Business Hospitality Management Award Bachelor of Business in Bar Management - Award Programme Code: OHCMA_7_Y3 OBARM_7_Y3 External Examiner(s): Internal Examiner(s): Mr. M. Stapleton Mr. A. Gregan Ms. K. Griffin Mr. T. Kelly Instructions: Answer one question from each section and any other one. Answer four questions in total. All questions carry equal marks. Duration: 2 Hours Sitting: Winter 2009 Requirements for this examination: Note to Candidates: Please check the Programme Title and the Module Title to ensure that you are attempting the correct examination. If in doubt please contact an Invigilator. Page 1 of 6

2 Section A Q1. Recent research on key tourism indicators undertaken by the UNWTO in the first quarter of 2009 confirms that European tourism is undergoing significant change. Discuss. Q2. Productivity is a key result area in terms of management yet it is difficult to define in the context of service industries. Examine the usefulness of Flynn s (1986) approach to performance management in the hospitality industry. Q3. Operations Management is about managing the system which directly produces a product or service. (Wild, 2002) Discuss this statement in the context of the hospitality sector. Section B Q4. In the operations management context outline and discuss the key issues involved in establishing staffing levels in a hospitality business. Q5. Capacity and Demand Management are key drivers in the effective management of a hospitality operation. Describe the key skills and approaches utilised in managing capacity. Q6. Development of a suitable concept for a hospitality business is key to the success of a business operation. Describe the key stages in development of concept for an operation and its design specification Page 2 of 6

3 Section C Q7. (a) As Banqueting Manager for a busy Cork Hotel, you are asked to calculate the selling price inclusive of Valued Added Tax (V.A.T) for the following Wedding Menus Menu A Food Cost 8.50 Menu B Food Cost 9.20 Menu C Food Cost Menu D Food Cost Menu E Food Cost Menu A Must achieve a Gross Profit of 60% Menu B Must achieve a Gross Profit of 63% Menu C Must achieve a Gross Profit of 65% Menu D Must achieve a Gross Profit of 70% Menu E Must achieve a Gross Profit of 72% (5x1) 5 Marks (b) During one weeks trading the turnover for a Sandwich Bar is 10, which represents 75% of Gross Sales Food Costs were 25% Labour Costs were 35% Overheads were 30% You are asked to calculate the following in Money Terms (a) Net Sales (b) Food cost (c) Labour Costs (d) Overheads (e) Net Profit (5x2) 10 Marks Page 3 of 6

4 (c) As Food and Beverage Manager of a medium sized hotel you have just come out of a departmental meeting where the performance of your Restaurant was discussed in great detail. At the meeting you were presented with the following information: Gross Sales for the Month of October were 150,000 inclusive of Value Added Tax (V.A.T.) The total cost of the food for the month was 46,000 Wages and Labour Costs were 37,627 Overheads were 28,000 As per the agreed budget you are requested to achieve a Gross Profit of 64% A Labour Cost of 32% Overheads of 23% Net Profit of 9% You are asked to calculate the (a) Net Sales (3 Marks) (b) The V.A.T. (3 Marks) (c) Comment on the performance of the restaurant and whether it achieved the required budgeted targets (4 Marks) (Total 25 Marks) Page 4 of 6

5 Q8. (a) From the following information, prepare a department trading and profit and loss account for the year ended 31 st December 2009, to show the net profit earned by each sales outlet of the Bishopstown Restaurants Cork. Comment on any matters to which you think attention should be drawn, and suggest what action should be taken. Net Sales Main Restaurant 122,000 Grill Room 87,000 Snack Bar 78,000 Opening Stock Main Restaurant Grill Room Snack Bar Closing Stock Main Restaurant Grill Room Snack Bar Purchases Main Restaurant 48,370 Grill Room 37,000 Snack Bar 31,190 Wages & Salaries Main Restaurant 30,870 Grill Room 26,110 Snack Bar 16,100 Expenses Main Restaurant 30,620 Grill Room 21,840 Snack Bar 19,570 Adjustments must be made to the figures in respect of all staff meals as follows Main restaurant 3,170 Grill Room 2,840 Snack Bar 1,690 (8X) 16 Marks Page 5 of 6

6 Q8. (b) The following figures were extracted from the records of the Flaming Wok Restaurant at 31 st Dec 2009 Food Beverage Purchases 620, ,200 Net Sales 1,550, ,000 You are required to take into account the following adjustments and calculate the restaurant s gross profit on food and beverages for The Cost of food for employees meals was 18, Beverages transferred to the kitchen amounted to 11, Food transferred to the bar amounted to 3, Opening Stocks at 1 st Jan 2009 were: Food 13,600 Beverages 17, Closing Stocks were: Food 13,100 Beverages 21,000 (9 Marks) (Total 25 Marks) Page 6 of 6